Michael A. McLachlan

HARTFORD — Two years after United Technologies Corp. signed a deal with the state to spend hundreds of millions of dollars in dormant tax credits to finance large capital projects, the General Assembly is considering a similar benefit for smaller companies.

Legislation would allow businesses to finance capital projects with valuable, but unused tax credits earned while spending on research and development. The projects must expand a business, increase employment or generate a "substantial return" to the state economy.

Fred Carstensen, a business professor at the University of Connecticut, has long urged legislators and Gov. Dannel P. Malloy to allow all...

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